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One of the greatest challenges of consumer data collection is the issue of privacy and consent. Today’s consumers are becoming more and more aware of how their information is collected, sold and used for marketing purposes.  How can companies overcome privacy issues and harness this information to deepen consumer relationships? Luis Macin, Nestlé Mexico’s VP E-Commerce, talks about Nestlé’s plans to develop wearables for consumer metrics during Portada México 2019.

Luis Macin, Nestle Mexico, Portada
Luis Macin, Nestlé Mexico’s VP E-Commerce

Interview conducted by Alejandra Velazquez

Problem Meet Solution

Data collection continues to dive deeper into the private lives of consumers and it is only natural that they feel their privacy is being invaded. Audiences find it unnerving when they mention something in conversation only to be offered that specific product online moments later. However, the great thing about wearables is the voluntary data collecting process. When users are nicely requested to share their data, it tackles the issue of consent and privacy. The consumer willingly welcomes a metrics device into the intimacy of their own home and even onto their own body and this is where the true power of wearables for consumer metrics comes into play. 

 

Who Wears Wearables?

The implementation of these devices in Mexico will take off immediately

According to emarketer.com, roughly a quarter of U.S. adults, 56.7 million, will use a wearable device at least once a month in 2019. Just over half of those will use a smartwatch. Furthermore, 3.8 million U.S. children and teens will have a wearable device. The e-health market is booming in Europe and North America, and it won’t take long for the wave to hit Mexico. “The implementation of these devices in Mexico will take off immediately because in Mexico we implement new technologies insanely fast, much faster than in other countries”, says Luis Macin, Nestlé Mexico’s VP E-Commerce.  In 2020, the wearables market will consist mostly of smartwatches, with a strong emphasis on e-health.

 

Offer Relevant Content for Consumer Engagement

But once they’re wearing the device, how can brands collect specific data so they know how to target consumers? 

The challenge is generating enough engagement so they’ll willingly share their information with you.

“There’s a driver behind every behavior, and each consumer has a different driver” says Macin. “You just have to identify their motivations and categorize them. For example, if your goal is physical performance, we’ll offer you the tools to have more endurance. If you’re concerned about your health, we can measure your BPM to protect your heart. The challenge is generating enough engagement so they’ll willingly share their information with you. You have to put the right cards upon the table, and the decision is theirs.” 


Luis Macin, VP E-Commerce at Nestlé Mexico, will be one of the dozens of brand marketing innovators present at Portada Miami on June 4, 2020. If you are interested in participating in Portada Miami and/or in Portada’s networking and knowledge-sharing platform with brand marketers please contact us here.


Nestlé’s Safe Bet on E-Health Products

Nestlé’s R&D is hard at work on e-health initiatives in Brazil, Latin America’s unofficial innovation hub. Monica Meale, Head of Nestlé Health Science LATAM told NutrIngredients “NHSc has strongly invested in digital innovation. In the last three years, the area increased its investments fivefold”. The company’s research focuses on developing market trends including e-commerce driven products and services, digital innovations (VR nutritional education videos as an example), virtual sign language assistants on websites and contests for Nestlé to collaborate with health startups in creating and designing health programs and activations.

Is Wearable Technology Expected To Drive E-Commerce?

Absolutely. As consumers receive custom-made specific information about their care, they will also receive specific recommendations and tailor-made nutrition plans that will drive e-commerce simply because it’s convenient. According to Luis Macin, Nestlé plans to offer users a holistic experience by incorporating themselves into the consumer’s lifestyle through wearable devices. And once they’re engaged in improving their health through the right diet and lifestyle suggestions – Nestlé’s product recommendations are only one click away. Ordering products will be as easy and embedded into their routine as their morning coffee. While we’re not quite at that level of e-commerce maturity yet but the focus on wearables for consumer metric collection and blending this with e-commerce opportunities is projected to be the next big frontier. 

Once they’re engaged in improving their health through the right diet and lifestyle suggestions – Nestlé’s product recommendations are only one click away


Luis Macin, VP E-Commerce at Nestlé Mexico, will be one of the dozens of brand marketing innovators present at Portada Miami on June 4, 2020. If you are interested in participating in Portada Miami and/or in Portada’s networking and knowledge-sharing platform with brand marketers please contact us here.


 

 

Loyalty Marketing is key. Roberto Muñoz, Head of Loyalty Travel at Puntos Colombia manages a joint program between Colombia’s largest bank Bancolombia and Latin American retailer Grupo Éxito. Prior to his current role, he was a strategist for Aeroméxico’s loyalty program Club Premier. The brand marketing leader shares key insights about digital channels for loyalty marketing with Portada including how tech and digital channels enable companies to engage and gain new customers and keep them happy coming back.
Interview conducted by Alejandra Velazquez

Roberto Muñoz, Portada, e-mail marketing
Roberto Muñoz, Puntos Colombia @puntoscolombia

Technology plays a crucial role in enabling marketers to do a better job, not least when it comes to loyalty marketing. In fact, 84% of executives surveyed by Accenture agree that companies are using technology to weave themselves seamlessly into how people live today. 

“Technology helps us to segment audiences. It sparks activation” Muñoz says, adding “Technology provides us the data to develop the right targeting strategies. That way, we keep captive users interested and lure in new consumers via their passion points, like travel, fashion and entertainment. The challenge is recruiting customers that actually interact with the brand, not just sign their name on a list.” But nothing matters if the information isn’t properly documented. The challenge is tracking customer data and applying it correctly in order to serve your marketing strategy. A department that manages and filters big data correctly is always a must.

But nothing matters if the information isn’t documented properly. A department that manages and filters big data correctly is always a must.

Digital Channels: E-mail Marketing is Still an Effective Tool

“Digital channels are key to bring new customers into our loyalty marketing programs. You can target specific audiences by sending key messages. 85% of our customers say they read our news through e-mail marketing. I’ve heard many experts talk about the death of e-mail marketing, but our numbers show the contrary,” Muñoz asserts.

Segmenting information via e-mail is the only thing that ensures the client remains active in your program.

According to Muñoz, segmenting information via e-mail is the only thing that ensures the client remains active in your program. Many strategists say “leave your most valuable customers alone, you don’t want them to get bored. I think when you’re really involved with a brand, you don’t mind how often they contact you. You know you’ll get relevant content eventually.”

…Social? Not so much

“Social network strategies are too focused on massive audiences. We address and recruit a very small percentage of users on social networks. Some programs only want users to click here and then to subscribe to a given program and get an immediate benefit. However, out of all users who sign up, a tiny percentage will actually become involved. You invest a lot of money and end up with a handful of users akin to your brand. One time in Aeroméxico we set a goal to sign up one million new customers onto our base. But in the end, less than 5% of those clients were actual travelers. The rest had been “bullied into it” by the hoards of ads we’d purchased on digital.”  However once you have acquired new clients, social media may prove a valuable tool for loyalty marketing.

You invest a lot of money and end up with a handful of users akin to your brand.

Loyalty Marketing: Three Ways to Get Customer Feedback

Reliable customer feedback is also an important piece of Puntos Colombia’s strategy for using digital channels for loyalty marketing. Muñoz has developed three ways to approach customers:  direct meetings, focus groups, and surveys.

“High-profile customers get invited to breakfast or lunch to offer their feedback and opinions about the program. Nothing is as valuable as having customers tell you how they feel in person. We have a very direct style of approaching customers. The director of the program may have a sit down with customers and explain what they can and can’t do about their non-conformities.”

They also have focus groups conducted through third-party researchers. Because when consumers don’t know they’re speaking directly to a brand, it helps them give unbiased feedback. Last but not least, there’s surveys. Many valuable customers take the time to respond and are often rewarded with incentives like additional points. The incentives help ensure they are interested in giving their honest opinion.

Reliable customer feedback is also an important piece of Puntos Colombia’s strategy.

Roberto Muñoz, Head of Loyalty, Travel at Puntos Colombia, will be one of the dozens of brand marketing innovators participating at at the exclusive knowledge-sharing and networking event Portada Live on Sept. 22.

Will 2020 be the year of the bounce back after several years of decline in panregional advertising expenditures out of Miami-South Florida into Latin America?  Miami continues to have distinctive advantages as a media buying hub, according to Portada’s recently published 2019-2020 Panregional Marketing and Media Report, which provides Latin American Panregional Marketing Expenditures forecasts for the 2019-2024 period.

The 2019-2020 Panregional Marketing and Media Report is a major tool for corporate expansion into Latin America as well as sales-planning/intelligence for marketing vendors offering services to major brands targeting the Latin American consumer. To get more information about the report, please contact Sales Director Leslie Zambrano.

According to Portada’s 2019-2020 Panregional Marketing and Media Report, Miami/South Florida is the largest panregional hub for actual buying (over US $200 million in 2019) as well as for influence over purchasing decisions (over US $ 1 billion).  The report also discusses the advantages and disadvantages of Miami as a panregional media hub, according to more than 100 major brand and media agency executives interviewed by Portada.

Portada expects Latin American-Panregional Marketing expenditures to reach US$ 740 million in 2019. Miami continues to be the main panregional marketing and media hub, although Mexico City and other centers have an increasing weight. This is one of the insights of the just-published 2019-2020 Panregional Marketing and Media Report, which provides Latin American Panregional Marketing Expenditures forecasts for the 2019-2024 period.

Portada’s 2019-2020 Panregional Marketing and Media Media Report provides data, intelligence, insights, and forecasts. The report is a crucial tool for corporate expansion into Latin America and sales-planning/intelligence for marketing vendors offering services to major brands targeting the Latin American consumer. The 75-page report includes a market volume and growth forecast model based on a survey of more than 100 brand and media agency executives conducted by Portada, answers a myriad of questions including the six below:

1. What is the size of the panregional marketing sector?

The overall actual Latin American Panregional Marketing Services Sector, understood as decisions taken out of several marketing hubs (*see question 2) including Miami, Mexico City, New York, London and others, has a volume of approximately U.S $ 740 million a year (2019), according to the report. Measured in influence, although not necessarily in direct purchasing power, the brand and media agency executives located at those centers influence approximately US $2.26 billion a year (see chart below.)

Panregional Marketing Expenditures
Actual and “Influence” on Panregional Marketing Expenditures

 

 

2. How is panregional marketing defined? (*)

Panregional marketing is understood as marketing services purchases for two or more Latin American countries by clients (brands) or media agencies located outside of those countries.

3. Which city is currently the largest hub for panregional marketing?

Miami/South Florida is the largest hub followed by Mexico City, New York, London and Sao Paulo. The report provides overall market volumes for marketing decisions taken out of the above hubs from 2016 to 2024.

4. What media category is increasing its share of panregional media buys?

The structure of the panregional media buy out of Miami has changed substantially over the last decade with Pay TV- ten years ago the clear leader – only capturing 20% of the share in 2019 and digital media increasing its share to 60%. The 2019-2020 Panregional Market and Media Report includes expenditures and market share forecasts  (2016 to 2024) for the below market services types (both overall as well as for Miami/South Florida):
Outsourced Content Marketing Services
Outsourced Social Media Related Services
Public Relations Services
Media Planning and Buying Services
Paid Media (Overall)
-Print
-Pay-TV (Cable and Satellite)
-Out of Home
-Radio
-Sponsorships
-OTHER (Including: Movie
-Advertising, Inflight, In-Game
Advertising)
Digital
-Social Media
-Search
-Display
-Video
-Audio Advertising

5. Does the 75-page research report also provide intelligence on Panregional Marketing Expenditures on the brand/client side?

Yes, the report displays  Panregional Marketing Expenditures volume forecasts (2019-2024) for the below ad  -categories.
-IT/Electronics
-Studios/Entertainment
-Financial Services
-Telecomm
-Cosmetics/Fragrance
-Luxury
-Travel/Tourism
-Beverages
-CPG
Other (including Automotive, Education
and Health Services)

6. What other brand related intelligence does the 2019-2020 Panregional Marketing and Media Report provide?

Dozens of examples of panregional (Latin American) marketing decisions by Fortune 1000 companies are provided. Intelligence includes the description of different ways companies structure their marketing organizations targeting Latin American consumers and their marketing decision making as well as from what hub (e.g. Miami, Mexico City, New York etc..) these decisions are made out of.

The 2019-2020 Panregional Marketing and Media Report is a major tool for corporate expansion into Latin America as well as sales-planning/intelligence for marketing vendors offering services to major brands targeting the Latin American consumer. To get more information about the report, please contact Sales Director Leslie Zambrano.

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